Gyeongju (South Korea), Oct.24 (ANI): Finance Minister Pranab Mukherjee said International Monetary Fund (IMF) reform that will see emerging markets given increased voting rights and board seats will be start in 2013.
Speaking after a meeting of finance leaders from the Group of 20 economies here on Saturday Mukherjee said that India would become the IMF's eighth largest member and its share of voting rights would rise to 2.75 percent.
"Shift in the quota share to dynamic Emerging Markets and Developing Countries EMDC's) and to under represented countries for over 6 percent while protecting the voting share of the poorest," said Mukherjee.
"As I mentioned India to be in the position eighth in quota share improving from 11th position moving in the first 10th position. Quota will improve to about 2.75 percent," he added.
Over 6 percent of voting power at the Fund will shift to dynamic developing countries such as China, which will become the third-biggest member of the 187-strong Washington-based lender.
"We have also agreed to double the quota size with a corresponding roll back in the New Arrangements to Borrow (NAB). A comprehensive review of the quota formula by January 2013, three years from now and completion of next regular review of quota by January 2014, currently the board size continue to remain 24," said Mukherjee.
Europe will give up two of the eight or nine seats it controls at any given time on the IMF's Executive Board, which will continue to have 24 members.
As a part of the wide-ranging package, the G20 agreed to double the IMF's quotas, which determine how much each country contributes to the IMF and much it may borrow from it.
The quotas currently totals about 340 billion dollars. By Lokender Singh (ANI)